Lease Continuations

Lease Continuations Beyond Primary Term

PrairieSky has a Lease Continuation Application (*updated March
2019) form which requests the lessee to provide information pertinent to confirm continuation of leases beyond primary term. While the use of the form is not a requirement under
all leases, we have found that using the application form does expedite the continuation process.

Depending on the specific terms of the lease, the formations eligible for continuation may either be those individual formations with active operations (formation based leases) or all
formations to the base of the deepest formation with operations (deep rights reversion leases).

Regardless of the type of lease, continuations are based on formations as opposed to a group of formations. For example, a PrairieSky lease at the end of its primary term that is producing
from the Sparky formation will only be continued in (or to the base of) the Sparky formation, not in (or to the base of) the Mannville Group.

Further examples of this include the Belly River being a Group consisting of the Oldman, Foremost and Basal Belly River formations; the Edmonton Group typically consists of the Scollard and
Horseshoe Canyon formations; and the Mannville Group includes the Colony, Sparky, Rex, Glauconite, Ellerslie, Dina and several other formations.